2. People want more then they can afford.
They must choose the best possible way
to use their resources and their money.
3. Economics revolves around money.
Medium of exchange for goods and
services.
Money is circulated by the government.
The government’s money is controlled by
the Federal Reserve System.
6. Choosing a sweater that costs less instead
of buying one you prefer. You save money
but don’t get what you want.
Trade-offs are usually negative.
7. Entrepreneurs create their own business.
The
labor force is growing rapidly with
more businesses emerging.
8. ExxonMobil and Wal-Mart are the largest
corporations in America in terms of
revenue.
Involves a large amount of shareholders
who each have a piece of the corporation.
Small businesses created by
entrepreneurs struggle to compete against
big corporations.
9. The two types of capital are human capital
and physical capital.
Human capital – The knowledge to do a
certain service, the economic value of an
employee’s skill.
Physical capital – already made goods
such as machinery, buildings and
technology.
10. The American market has become
consumer oriented.
Because not everything is available in
stores here in America, we must trade with
other countries.
11. Taxes help pay for roads, schools,
libraries, and many other goods and
services.
The government uses taxes to pay for the
services it provides.
13. Companies sell stock when they need
money to expand or grow.
Stocks are like bricks in a building, and a
brick owned by an individual is called a
share.
If the company you invest in has a loss,
the value of your shares goes down.
The stock market is a supermarket for
buying and selling shares in different
companies.
